The San Francisco Tourism Improvement District Management Corporation (SFTIDMC) is the owners

association group that over sees the San Francisco Tourism Improvement District (TID) and the San

Francisco Moscone Expansion District (MED). The San Francisco Tourism Improvement District

Management Corporation, governed by a board of industry representatives, ensures that the funds are

used to benefit the assessed businesses by allocating them to San Francisco Travel programs that draw

conventions, meetings, events and leisure travelers to San Francisco, and by keeping the city's convention

facilities competitive with those of other major cities.

San Francisco Tourism Improvement District

The San Francisco Tourism Improvement District ensures that funding for the San Francisco Travel

Association's selling, marketing and promotion of San Francisco as a visitor destination.

Annual Report | 2014-2015

SALES AND MARKETING PROGRAM

The purpose of the sales and marketing program of work is to set industry standards and position San Francisco as the most compelling destination in the world. One of the primary objectives is to generate visitor-related economic impact to San Francisco and the region. SFTIDMC contracts the services of the San Francisco Travel Association which, with more than 100 years’ of expertise, is well positioned to fulfill this goal. With the benefit of the TID funding, San Francisco Travel has been able to conduct a comprehensive review and strategic analysis of the industry, and has created a plan that focuses on being proactive and setting new, visionary strategies to lead San Francisco’s tourism industry. Highlights of San Francisco Travel activity during FY 2014-2015:

Convention and Meeting Sales

Over 10 million room nights in San Francisco hotels

$1.3 +billion in direct spending

Sales mission to Washington, DC and Chicago reaching over with over 110 meeting planners

Attended over 50 trade shows and events including Meeting Professional International, Professional Convention Management Association, International PowWow

Marketing Promotion

San Francisco’s balanced mix of convention/ meetings travel, leisure/consumer travel and business travel means that the city isn’t as vulnerable to swings in any one market as some other destinations. Leisure visitors comprise 75% of all trips to San Francisco. San Francisco Travel’s leisure marketing team has the enviable task of building relationships with, inviting, converting and retaining potential and existing San Francisco leisure travelers. Visitor Information Center (ViC)

400,000 visitors per year 14 languages spoken by staff and volunteers

1.9 + million Total room nights booked

SanFrancisco.travel 5+ million visitors $300+ million in economic impact Key Marketing Themes Never the same. Always San Francisco. Art & Culture Food & Wine Diversity Sustainable Travel Social Media Facebook 62+ million impressions Twitter 169,000+ followers Instagram 100,000+ followers Publications Produced Visitor Planning Guide, Produced Bi-Annually

The official leisure visitor fulfillment piece is distributed to 225,000 travelers annually.

Meeting Planners Guide, annual

Reach 15,000 meeting and travel professionals who bring high - value travelers to San Francisco.

Direct-mailed to an exclusive list of meeting professionals, travel agents and tour operators in the U.S. and Canada

14 overseas travel representative offices

Tourism Sales and Marketing 4+ million international visitors to San Francisco

San Francisco Travel has 14 representation offices in 13 different countries that are responsible for direct contact with the travel trade and media promoting San Francisco.

Partnered with SFO on new air service to Dublin, China and Abu Dhabi.

San Francisco Travel hosted over 1,000 travel professionals in 2014-15

San Francisco hosted 800+ journalists

Media Coverage o 5 billion impressions o $300+ million value

18 Million visitors to

San Francisco

$10.7 billion visitor

spending

MOSCONE EXPANSION DISTRICT

Construction began on the Moscone Expansion and Renovation project in November 2014. Phase 0, make ready work, was completed in April of 2015. Phase 1 construction started in April 2015.

Ground Breaking Ceremony was on May 21, 2015

Continued communications with Convention clients that are booked through the construction years. Goal is to have Moscone Center remain open and operational throughout the project.

Over $1.26 million was utilized to provide convention customers with rental incentives to attached conventions to San Francisco.

A renovation project to install new air wall panels with door locks at Moscone West was completed.

.

TID and MED COLLECTION METHOLOGY

Tourist hotels are broken up into two zones. The zones are the same for the TID and MED assessments. Tourist hotels

in Zone 1 are assessed 1% of gross revenue from tourist rooms for the TID and 1.25% for the MED. Tourist hotels in

Zone 2 are assessed 75% of gross revenue from tourist rooms for TID and .3125 for the MED.

Zone 1 Tourist hotels: All tourist hotels with addresses on or east of Van Ness Avenue, on or east of South Van Ness

Avenue, and on or north of 16th Street from South Van Ness to the Bay, including all tourist hotels east of Van Ness

Avenue as if it continued north to the Bay, and north of 16th Street as if it continued east to the Bay.

Zone 2 Tourist hotels: All tourist hotels with addresses west of Van Ness Avenue and South Van Ness Avenue, and all

tourist hotels south of 16th Street.

San Francisco Tourism Improvement District Management Corporation (SFTIDMC)

BUDGET & BALANCE SHEET

San Francisco Tourism Improvement District Management Corporation (SFTIDMC) Tourism Improvement District & Moscone Expansion District

BUDGET + BALANCE SHEET

JULY 2014-JUNE 2015 ACTUAL TID

MED TOTAL

INCOME ACTUAL

ACTUAL ACTUAL

Assessment Fee $24,471,280 $28,756,795 $53,228,075

Interest Income $40,316 $67,655 $107,971

TOTAL INCOME $24,511,596 $28,824,450 $53,336,046

EXPENSES ACTUAL

ACTUAL ACTUAL

SFTA Marketing & Operations $21,815,239 $0 $21,815,239

Moscone Convention Center Development and Expansion $0 $16,383,424 $16,383,424

Moscone Convention Center Capital Fund $0 $307,170 $307,170

Moscone Convention Center Incentive Fund $0 $1,350,000 $1,350,000

SFTIDMC Administration and Operating Expenses $547,003 $306,977 $853,980

TOTAL EXPENSES $22,362,242 $18,347,571 $40,709,813

NET INCOME $2,149,354 $10,476,879 $12,626,233

JULY 2014-JUNE 2015 BALANCE SHEET

TID

MED

TOTAL

ASSETS Cash $9,709,304 $17,505,899 $27,215,203

Accounts Receivable, Net $5,526,307 $6,622,695 $12,149,002

TOTAL ASSETS $15,235,611 $24,128,594 $39,364,205

LIABILITIES Accounts Payable $790 $5,592,059 $5,592,849

Accrued Liabilities $18,000 $22,000 $40,000

TOTAL LIABILITIES $18,790 $5,614,059 $5,632,849

TOTAL NET ASSETS (CARRYOVER) $15,216,821 $18,514,535 $33,731,356

TOTAL LIABILITIES & NET ASSETS $15,235,611 $24,128,594 $39,364,205

JULY 2015-JUNE 2016 BUDGET TID MED TOTAL

INCOME BUDGET

BUDGET

BUDGET

Assessment Fee $25,042,000 $29,322,000 $54,364,000

Interest Income $0 $0 $0

TOTAL INCOME $25,042,000 $29,322,000 $54,364,000

EXPENSES BUDGET BUDGET BUDGET

SFTA Marketing & Operations $24,677,500 $0 $24,677,500 Moscone Convention Center Development& Expansion $0 $25,266,500 $25,266,500

Moscone Convention Center Capital Fund $0 $289,000 $289,000

Moscone Convention Center Incentive Fund $0 $2,599,000 $2,599,000

SFTIDMC Administration $364,500 $445,500 $810,000

Contingency/Reserve $0 $722,000 $722,000

TOTAL EXPENSES $25,042,000 $29,322,000 $54,364,000

NET INCOME $0 $0 $0

PROJECTED CARRYOVER DISBURSEMENT TID

MED

TOTAL

TO BE USED IN FY 2015-2016

TO BE USED IN FUTURE YEARS

CARRYOVER

SFTA Marketing & Operations $11,558,987 $0 $11,558,987 $0 $11,558,987 Moscone Convention Center Development and Expansion $0 $15,153,895 $15,153,895 $0 $15,153,895

Moscone Convention Center Capital Fund $2,334,361 $138,207 $2,472,568 $0 $2,472,568

Moscone Convention Center Incentive Fund $652,083 $2,658,424 $3,310,507 $0 $3,310,507

Contingency/Reserve $671,390 $564,010 $1,235,400 $0 $1,235,400

TOTAL CARRYOVER DISBURSEMENT $15,216,821 $18,514,535 $33,731,356 $0 $33,731,356

One Front Street, Suite 2900 San Francisco, CA 94111 415.227.2605 info@sftid.com www.sftid.com

SFTID Board of Directors | FY 2014-15

BOARD CHAIR

Toni Knorr, St Regis Hotel

BOARD VICE-CHAIR

Ralph Lee, Hotel Whitcomb

SECRETARY/TREASURER

David von Winkler. Kimpton Hotels

Board Members

Rodrigo Enriquez, Extronomical Adventures

Karlene Holloman, Commune Hotels

Thomas Klein, Fairmont Hotels

John Noguchi, City and County of San Francisco

Chuck Pacioni, Marriott Marquis

Stephen Revetria, Giants Enterprises

Rick Swig, RSBA & Associates